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In Washington:
Dale Lautenbach (202) 473-3405 E-mail: dlautenbach@worldbank.org Washington, D.C., January 28, 2005—The World Bank today received a set of documents from the Government of Pakistan to support its request for the appointment of a “neutral expert” to consider a difference that has arisen in the application of the 1960 Indus Waters Treaty. The Indus Waters Treaty was concluded by India and Pakistan on September 19, 1960. The World Bank is a signatory to the Treaty for certain specified purposes* . It is not a guarantor of the Treaty. On January 18, the Bank received the request from the Government of Pakistan calling on it to appoint a Neutral Expert under the provisions of the Treaty. The Bank immediately requested that Pakistan share with it a record of the actions taken prior to the request to ensure meticulous compliance with the Treaty by all parties. Under the terms of the Treaty, there are several prior steps before the World Bank’s role in appointing a Neutral Expert is triggered. A first step could be that any "question" between the parties to the Treaty be resolved through the Permanent Indus Commission itself. If the "question" is not resolved there, it becomes a "difference" and is referred to a Neutral Expert, to be appointed by the two countries, or by a third party agreed upon by the two countries. In the absence of such an agreement, the appointment of the Neutral Expert would be made by the World Bank, in consultation with the two countries. This consultation would seek as far as possible to reach consensus within a reasonable time, in the absence of which the World Bank has an obligation under the Treaty to appoint a Neutral Expert. The documents received today, which the Bank will review expeditiously, need to indicate that all the necessary prior actions have been taken by the parties, so that the Bank may satisfy itself that it is in strict compliance with the Treaty when it takes the appropriate next step. The Treaty does not envisage a role for the World Bank in the determination of any issues which might be brought before a Neutral Expert. The Bank will not participate in any discussion or exchange beyond its role in the process of appointing a Neutral Expert. * According to the Treaty, the remaining responsibilities of the World Bank are: One, a role for the World Bank in the appointment of a Neutral Expert. The first step under the Treaty is to resolve any "question" through the Permanent Indus Commission itself. If the "question" is not resolved there, it becomes a "difference" and is referred to a Neutral Expert, to be appointed by the two countries, or by a third party agreed upon by the two countries. In the absence of such an agreement, the appointment of the Neutral Expert would be made by the World Bank, in consultation with the two countries. Two, the management by the World Bank of a trust fund to meet the expenses of a Neutral Expert. Three, a role for the World Bank in the establishment of a Court of Arbitration. If the “difference” does not fall within the mandate of the Neutral Expert, or if the Neutral Expert rules that the “difference” should be treated as a “dispute”, then a Court of Arbitration would be established. The role of the World Bank, along with other institutions such as the Secretary General of the United Nations, is to participate in the selection of three appointees to the seven-person Court. The parties to the Treaty each select two members of the Court. The World Bank itself plays no part in the actual hearing or determination of the issues before the tribunal. For more information about the Indus Waters Treaty, please visit: http://www.worldbank.org/indus
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